International Factor Price Equalization in a limited-substitutability technology framework

This paper generalizes the Heckscher-Ohlin trade theory summarized in Samuelson's [Samuelson, P.A., 1949, International Factor Price Equalization Once Again, The Economic Journal 59, 181-197.] calculus treatment to the domain of non-differentiable technologies characterized by discrete alternative Leontief-Sraffa techniques. Demonstrated here is how the close qualitative parallelisms between limited-substitutability technologies and neoclassical marginal-productivity models permit the validity of the theorems of international factor price equalization and their well-known extensions even when smooth marginal productivities cannot obtain.